3. RESTRUCTURING COSTS

12 Months Ended

Dec. 31, 2011

Restructuring and Related Activities Disclosure [Text Block]

3. RESTRUCTURING COSTS

Below is a reconciliation of the beginning and ending liability balances related to our restructuring efforts for the years ended 2011, 2010 and 2009. Provision for restructuring costs from continuing operations were $0.8 million, $12.3 million and $9.4 million in 2011, 2010 and 2009, respectively. The expenses associated with these activities are reflected in “Restructuring costs” in our consolidated statements of operations. Cash payments for restructuring costs from continuing operations were $6.8 million, $9.5 million and $4.3 million in 2011, 2010 and 2009, respectively. The components included in the reconciliation of the liability balances include costs related to our continuing and discontinued operations (in thousands):

	Balance at December 31, 2008		Provisions		Cash payments			Equity released			Non-cash		Balance at December 31, 2009
Accrued restructuring costs:
Severance and exit costs	$	270	$	14,776	$	(9,519	)	$	(164	)	$	129	$	5,492
Contractual obligations		1,583		7,623		(1,548	)		—			7		7,665
Total restructuring costs	$	1,853	$	22,399	$	(11,067	)	$	(164	)	$	136	$	13,157

	Balance at December 31, 2009		Provisions		Cash payments			Equity released			Non-cash			Balance at December 31, 2010
Accrued restructuring costs:
Severance and exit costs	$	5,492	$	11,432	$	(10,534	)	$	(248	)	$	(345	)	$	5,797
Contractual obligations		7,665		2,103		(2,580	)		—			(3,391	)		3,797
Total restructuring costs	$	13,157	$	13,535	$	(13,114	)	$	(248	)	$	(3,736	)	$	9,594

	Balance at December 31, 2010		Provisions		Cash payments			Equity released		Non-cash			Balance at December 31, 2011
Accrued restructuring costs:
Severance and exit costs	$	5,797	$	731	$	(5,116	)	$	—	$	(402	)	$	1,010
Contractual obligations		3,797		379		(1,662	)		—		173			2,687
Total restructuring costs	$	9,594	$	1,110	$	(6,778	)	$	—	$	(229	)	$	3,697

Realignment of Workforce – 2011

During 2011, we recorded restructuring expense of $1.1 million, including $0.3 million related to discontinued operations, which consisted of severance and lease termination costs in 2011, net of adjustments of ($0.7) million relating to existing reserves for prior years as detailed below. For the 2011 realignment, we recorded $1.6 million of severance costs, including $0.3 million recorded in discontinued operations, and $0.2 million of lease termination costs associated with efforts to consolidate and streamline various functions of our work force. As a result, we eliminated approximately 30 positions. On a segment basis, these restructuring costs totaled $1.1 million in North America, $0.4 million in Europe and $0.3 million in Asia Pacific. Our reserve for the 2011 restructuring costs was $0.7 million at December 31, 2011. We anticipate these severance-related costs will be paid over the next year and these lease terminations cost will be paid over the next 20 months.

Realignment of Workforce – 2010

During 2010, we recorded $10.2 million of severance costs and $0.6 million of lease termination cost associated with efforts to consolidate and streamline various functions of our work force. We also recorded $1.8 million of asset impairments in connection with these restructuring efforts. In addition, we recorded $0.9 million of exit costs related to marketing efforts abandoned during the year and $0.5 million of exit costs related to the reorganization of our operating structure subsequent to our PGiSend sale as restructuring costs. As part of these consolidations, we eliminated approximately 165 positions. On a segment basis, these restructuring costs totaled $8.5 million in North America, which included the acceleration of vesting of restricted stock with a fair market value of $0.2 million in North America, $2.5 million in Europe and $1.2 million in Asia Pacific. During 2011, we adjusted our initial estimate of severance and exit costs by ($0.8) million in North America and ($0.1) million in Europe. Also during 2011, we adjusted our initially recorded lease termination costs by ($0.1) million in North America and $0.1 million in Europe. Our remaining reserve for the 2010 realignment was $0.6 million at December 31, 2011, which we anticipate will be paid over the next 15 months.

Realignment of Workforce – 2009

During the year ended December 31, 2009, we executed a restructuring plan to consolidate and streamline various functions of our work force. As part of these consolidations, we eliminated approximately 500 positions. During the year ended December 31, 2009, we recorded total severance and exit costs of $14.8 million, which included the acceleration of vesting of restricted stock with a fair market value of $0.2 million in North America. Additionally, during the year ended December 31, 2009, we recorded $4.4 million of lease termination costs associated with office locations in North America and Europe. On a segment basis, these restructuring costs totaled $12.0 million in North America, $6.6 million in Europe and $0.6 million in Asia Pacific. During 2011, we updated assumptions regarding lease termination costs, resulting in a $0.1 million adjustment in North America. In 2011 we also recorded $0.1 million of accretion due to the passage of time. Our reserve for the 2009 realignment was $2.4 million at December 31, 2011, comprised primarily of lease termination costs, which we anticipate will be paid over the next seven years.